Kolkata Port Trust (KoPT) is beset with operational and traffic problems. Chairman M L Meena tells Shine Jacob what he plans. Edited excerpts:
Is Kolkata Port losing its importance?
In eastern India, Kolkata port is the gateway. To an extent, it was losing importance due to the falling draft. Regarding this, the state government and industry leaders have big apprehensions, for overall economic development of the region depends on the functioning of the Kolkata and Haldia port system. If something happens to the port facilities or even a decrease in traffic, it will affect economic development and functioning of industries.
What I am trying to do is to develop new port facilities and reduce the uncertainties over existence of both the port systems. Now, KoPT is riding the tide of change.
What problems did you face after taking charge of KoPT last June?
KoPt is not new to me. Earlier, I spent four years as the deputy chairman of Haldia. So, I know exactly the problems the port is facing, like dredging and reducing draft. Even the total parcel size of each vessel has come down by to 5,000 to 7,000 tonnes. Now, a vessels first goes to Paradip to unload the cargo and then moves to Haldia with a draft-away label. It’s a real challenge to get out of these problems.
One issues hampering growth is the low draft in the river channel. Dredging cost is also rising annually. What are the steps to reduce this?
Annually, maintenance dredging in the Hooghly costs about Rs 400 crore. To solve this, we are trying calculated, scientific dredging. First, we identify patches requiring immediate removal, then a detailed survey is done to identify the area to be dredged. Then our commander gives instructions and a status report on dredging is submitted on a daily basis.
The methodology has also changed. Earlier, we used to dump dredged materials back to the river itself. Now, we have identified areas where shore dumping can be done, at Sagar and Rasulpur. There we will create a receptacle and for this about 2,000 acres of land has been identified. Once the land is developed, we will create the Sagar port facility. Initial work on this will start with in a month.
Dredging cost will come down because of the opening of the Eden channel. Work on it has already started and will be completed in February or March this year. Once the channel is stabilised, dredging cost will be reduced by almost 50 per cent annually.
Which major developmental projects are you planning?
As I said, it is a revival time for us. A number of projects are in the pipeline, like Haldia Dock-II (Salukkhali), Diamond Harbour container terminal, transloading facility and a floating terminal at Sandheads and Sagar Port facilities. At Haldia Dock II, a nine-metre draft without dredging is available, where four jetties will be developed through a public-private participation (PPP) mode for handling about 20 million tonnes. Plans are also going on for rail connectivity.
Sandheads offers over 50-metre draft, the highest among major ports in the country. The draft would permit mid-stream transfer of dry bulk cargo through transloading. According to the plan, smaller vessels would shuttle between the transloading ship and floating terminal for transportation of cargo to Kolkata and Haldia. We also want to develop a full-fledged port facility at Sagar Island on the PPP mode. At Sagar, a 20-metre draft will be available without dredging. The Diamond Harbour container terminal will have four ship jetties and three barge jetties.
How much investment will Kolkata port see on all these projects?
All these projects are going to happen in PPP mode. Total investment will be close to Rs 10,000 crore — Rs 1,200 crore on the Diamond Harbour project, Rs 1,000 crore on Haldia Dock II, Rs 500 crore for Sandheads and more than Rs 5,000 crore for Sagar Islands.
Once the project falls in place, where do you see the future of Kolkata port?
With these development projects, Kolkata has the potential to be one of the largest riverine ports in the world, in terms of capacity and traffic. Even if not the largest, we will be able to regain the past glory. That’s why 2011 is a very important year for us. Because the projects we have conceived should show the light. I and all the staff of KoPT are working very hard to maintain transparency on all these contracts to make it successful.
Which is your dream project?
The project on Agar port. RITES is conducting the feasibility study for it and will come up with the results in another nine months. Agar will take at least five years to materialise, it will have a 60-million tonne capacity.
According to reports, KoPT is facing some financial challenges, too. Is it going to affect you in the long run?
We are bearing a huge pension liability, an estimated Rs 130 crore annually for nearly 33,000 pensioners. At the same time, with about 9,000 staff, implementation of the new pay scale has put added pressure. With these liabilities, our cargo volume is also decreasing, which is a cause of concern.
But things are not as serious as if we are forced to depend on the government. If we do it, we will turn sick. KoPT wants to stand on its own feet. Then only will we be able to regain the cargo we have lost to ports like Paradip, Vizag and Dhamra.
